Bitcoin miner Riot Platforms reported a second-quarter net loss of $84.4 million, compared with a loss of $27.4 million in the same period last year.
Despite the financial hit, the company reported quarterly revenue of $70 million, down slightly from $76.7 million in the same period last year, a result that reflected a tough environment following the Bitcoin network's recent “halving” event.
Riot Platforms' loss per share for the three months ended June 30 was $0.32.
Second Quarter Results
The company's net loss was due to a $76.4 million decrease in the fair value of bitcoin, non-cash stock-based compensation expense of $32.1 million and depreciation and amortization expense of $37.3 million.
The company also reported a 52% drop in bitcoin production, from 1,775 to 844 bitcoin in the second quarter of 2023. However, despite the decline, Riot Platforms managed to maintain high gross margins with revenue in line with the previous year.
The “halving” event and increasing network difficulty have increased the average direct cost of mining Bitcoin, increasing from $5,734 to $25,327 per Bitcoin in Q2 2023.
The company reported power credits of $13.9 million for the quarter, including $4.4 million from a demand response program that helped reduce average energy costs.
Riot ended the second quarter with working capital of $646.5 million, including $481.2 million in cash on hand, and held 9,334 unencumbered bitcoins valued at approximately $585 million.
Going forward, Riot Platforms expects to achieve a total self-mining hashrate capacity of 36 EH/s by the end of 2024, with an increased hashrate guidance of 40 EH/s to 56 EH/s deployed in 2025.
expansion
Riot CEO Jason Leth highlighted the company's accomplishments, including the successful powering of its second large-scale facility in Corsicana, Texas, which will add two buildings with a combined capacity of 200 megawatts (MW), with the remaining two buildings scheduled to be operational by the end of 2024.
Additionally, Riot expanded operations at its Rockdale facility, nearly doubling its installed hashrate to 22 exahash/second (EH/s) by the end of the quarter.
In July, Riot Platforms further bolstered its growth pipeline with the acquisition of Block Mining, a vertically integrated bitcoin miner based in Kentucky. The acquisition provided the company with 60MW of power capacity across two facilities, with the potential to expand to more than 300MW by the end of 2025.
The company plans to leverage its strong balance sheet and experienced development team to continue building best-in-class Bitcoin mining facilities.
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